DoD's $14.8M R&D contract with LITE CYCLES, INC. awarded in 2001 for Arizona-based work

Contract Overview

Contract Amount: $14,857,323 ($14.9M)

Contractor: Lite Cycles, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-12-20

End Date: 2008-04-30

Contract Duration: 2,323 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85745

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to LITE CYCLES, INC. for work described as: Key points: 1. Contract awarded for research and development, indicating investment in innovation. 2. The contract spanned over 6 years, suggesting a long-term project. 3. Awarded by the Department of Defense, highlighting its strategic importance. 4. The contract type was Cost Plus Fixed Fee, which can incentivize cost control. 5. The geographic location of performance was Arizona. 6. The contractor, LITE CYCLES, INC., received a significant award amount.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its age and specific R&D nature. The Cost Plus Fixed Fee structure, while common, can lead to cost overruns if not managed tightly. Without comparable R&D projects from the same period or specific performance metrics, assessing true value-for-money is difficult. The fixed fee component provides some incentive for the contractor to manage costs, but the overall cost is subject to actual expenses incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a limited competitive landscape. The specific reasons for exclusion are not detailed, but it implies that not all potential offerors were considered. The number of bidders is not specified, making it hard to fully assess the impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers compared to a fully open and unrestricted competition. It raises questions about whether the government secured the best possible price.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially advancements in physical, engineering, or life sciences research. The contract supported research and development activities, contributing to technological innovation. The geographic impact was concentrated in Arizona, where the contractor is located and performance occurred. Workforce implications would include employment for researchers, engineers, and support staff at LITE CYCLES, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation.
The long duration of the contract could increase the risk of cost escalation.
Lack of specific performance metrics makes it difficult to assess R&D success.

Positive Signals

The contract was awarded to a specific company, indicating a focused effort.
The Cost Plus Fixed Fee structure provides some cost control incentives.
The R&D focus suggests investment in future capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation and often involves long-term investments with uncertain outcomes. Comparable spending benchmarks are difficult to establish without knowing the specific R&D area, but government R&D spending is a significant portion of the federal budget, supporting technological advancement across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, LITE CYCLES, INC., would have determined its own subcontracting needs.

Oversight & Accountability

Oversight mechanisms for this contract would have been managed by the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is generally expected in federal contracting, though specific details of R&D progress might be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Federal Contract Research Centers
Science and Technology Investment Programs

Risk Flags

Limited competition may have impacted price.
Long contract duration increases risk of cost overruns.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to LITE CYCLES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LITE CYCLES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2001-12-20. End: 2008-04-30.

What was the specific research and development area for this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 541710, which corresponds to 'Research and Development in the Physical, Engineering, and Life Sciences'. However, the specific sub-field or technological area within this broad category is not detailed in the provided data. This level of specificity is often found in the contract's statement of work, which is not included here. Understanding the precise R&D focus would be crucial for evaluating the contract's technical objectives and potential impact.

How did the final cost compare to the initial estimated cost for this Cost Plus Fixed Fee contract?

The provided data does not include information on the initial estimated cost or the final incurred cost for this contract. For a Cost Plus Fixed Fee (CPFF) contract, the government pays the actual allowable costs incurred by the contractor plus a fixed fee representing profit. While the fixed fee is predetermined, the total cost can vary based on actual expenses. Without access to the contract's financial execution details, it's impossible to compare the final cost to any initial estimates or to assess the efficiency of cost management throughout the contract's duration.

What were the key performance metrics and deliverables for this R&D contract?

The provided data does not specify the key performance metrics or deliverables for this contract. For Research and Development (R&D) contracts, these are typically outlined in the Statement of Work (SOW) and can include technical milestones, prototype development, research reports, data analysis, or successful demonstration of a technology. Without this information, it is difficult to assess whether LITE CYCLES, INC. successfully met the contract's objectives or achieved the intended R&D outcomes.

What is the track record of LITE CYCLES, INC. with federal contracts, particularly R&D?

The provided data indicates that LITE CYCLES, INC. was awarded this specific contract by the Department of Defense. However, it does not offer a comprehensive overview of their track record with federal contracts, including other R&D awards, past performance evaluations, or any history of contract disputes or successes. A thorough assessment would require searching federal procurement databases like SAM.gov or FPDS for all contracts awarded to this entity and reviewing any available performance information.

How does the duration of this contract (2323 days) compare to typical R&D contracts of similar scope?

A duration of 2323 days (approximately 6.4 years) for an R&D contract is relatively long, but not uncommon for complex research initiatives. The typical duration can vary significantly based on the technological maturity, the scope of research, and the specific agency's program objectives. Longer durations often indicate a phased approach to research, allowing for iterative development and testing. However, extended periods can also increase risks related to cost escalation, technological obsolescence, and shifts in strategic priorities.

What was the rationale for excluding certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The rationale for excluding specific sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award is typically documented in the contract file. Common reasons include national security concerns, proprietary technology limitations, or the need for specialized capabilities that only a limited number of entities possess. Without access to the specific justification documented by the Department of Defense or the Defense Contract Management Agency at the time of award, the precise reasons for excluding certain sources remain unknown.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 2301 N FORBES BLVD , SUIT, TUCSON, AZ, 85745

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $38,220,906

Exercised Options: $823,269

Current Obligation: $14,857,323

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline